Originally known as “corporate raiders” or “greenmailers” — a portmanteau of “greenback” and “blackmail” — activist investors historically weren’t thought of as a force for good. The activists then tended to dump their shares, pocket the profits and move on to the next target. For about three years, he owned a large stake in Apple and agitated repeatedly for the company to raise its stock buyback program. Like dividends, stock repurchase plans are a way for companies to return cash to their shareholders. In recent years, activist investors have adjusted their approach, as firms such as ValueAct and Third Point have sought more strategic changes in a company’s long-term strategy.

Source: New York Times June 09, 2021 14:37 UTC